MRES taps demand-side management for 85 MW

If demand-side management is a resource, then Missouri River Energy Services' Bright Energy Solutions DSM program is going to be an 85-megawatt powerplant—built without permitting, siting or breaking ground.

Targeting large customer loads first

MRES begins phasing in the program this year aimed at saving approximately 85 MW and 233 GWhs from 2008 to 2020. Initial efforts will target commercial and industrial loads, with residential programs rolling out in 2009. "With larger loads, it is easier to make a big impact quickly," explained Energy Services Manager Joni Livingston. "It won't take long for our member utilities to see the reduction in their peak load growth."

The program will offer C & I customers incentives for:

• Energy efficient lighting

• Energy efficient motors, pumps and variable-frequency drives

• Energy efficient air conditioning, chillers and other cooling technologies

• A custom program for improvements to process equipment or other customer-specific equipment that result in reduced demand.

Similar load management programs will be available to residential customers beginning in 2009. MRES will continue to look at other technologies for future programs.

Road to energy efficiency begins with IRP

An agency-level strategy to save 85 MW is an ambitious goal—one that began with integrated resource planning. MRES conducts an integrated resource planning study on a regular basis to determine the optimum way to supply energy. Livingston said, "It's a valuable tool to help the agency meet its obligations to our member communities in a reliable, cost-effective manner."

DSM activities have long been part of the IRP process at the municipal utility level. In 2006, MRES included an evaluation of DSM activities at the agency level and let DSM compete against supply-side resources. The evaluation included a potential study to determine how much demand reduction might potentially be accomplished, in addition to what MRES members were already doing. The analysis showed DSM to be the least cost-resource for MRES, with potential savings of 85 MW over 12 years. As a result of those findings, MRES set out to implement a coordinated DSM program across its member systems.

Teamwork and new tools

So instead of building a new generator, MRES sought the guidance of their members by forming a Demand-side Management Task Force. Launched in May 2006, the task force brought together 16 representatives from MRES member utilities in each of the four states MRES serves. The members represent a cross-section of large and small utilities, utilities with heavy commercial and industrial load, and those with mostly residential load.

"Everyone we invited to participate was enthusiastic about the project," recalled Livingston. "Most of the utilities had some kind of DSM experience, so they brought their expertise to the table and they recognized the initiative was another opportunity to enhance customer relationships."  

In seven meetings over 18 months, the task force has examined market potential for DSM measures, economic impacts of DSM, barriers to achieving goals, new technologies, marketing strategies and implementation strategies. They used several tools to help with their analysis, including the market potential conducted by Summit Blue, the consulting services of Morgan Marketing Partners and DSMore evaluation software. The software compares the potential impacts of options such as energy efficiency, demand reduction and load control programs to other typical types of approaches and technologies.

The DSM Task Force determined that MRES should start with programs targeting large commercial accounts. The measures that Bright Energy Solutions is focusing on yield the most immediate and significant results, not only for utilities but also for the customers. "The difference large businesses see in their energy bills is an incentive on its own," commented Livingston.

Rolling out the program

MRES is working on application forms and marketing materials to begin implementing the programs. Placing the initiatives under the umbrella brand, "Bright Energy Solutions" will help participating MRES systems and their member-consumers identify the program. Branding will also provide MRES members with ready-made outreach materials and opportunities for joint promotions.

To introduce member utilities to the new DSM programs, MRES is planning "DSM Technology Days," a two-day event in January. The first day of the event will focus on load management technologies and programs, and the following day will highlight cash incentive programs for the end-use customers of MRES members. After the introduction to members, MRES will offer marketing materials; presentations to governing boards, customers, and trade allies; and personal assistance as needed to get the DSM programs going in each member community.

"Our message is that DSM is good for customers, the local utility and for MRES," said Livingston. "Customers will get an incentive to offset the capital cost of making efficiency improvements that will reduce their peak demand and their utility bill. For the local utility and for MRES, we will be acquiring a least-cost resource, which will help us hold down everyone's rates."

Livingston added that today's customers are more knowledgeable about the value of energy efficiency, how it will affect their utility bill and their bottom line, and of the benefits to the environment. "Working with customers to help them use energy more efficiently is what public power utilities do best," she said "The Bright Energy Solutions programs will give customers more tools to work with," she said.

Resources

• Missouri River Energy Services
• Integrated resource planning
• Summit Blue
• Morgan Marketing Partners

People

• Joni Livingston

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